Saudi Arabia to impose tax on tobacco, sugary drinks on June 10

The GCC have agreed to impose the tax on tobacco. (AFP)
Updated 28 May 2017
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Saudi Arabia to impose tax on tobacco, sugary drinks on June 10

DUBAI: Saudi Arabia will impose a special tax on tobacco and sugary drinks on June 10, as part of a series of steps toward closing a budget deficit caused by low oil prices.
Khalid Khurais, director of the selective tax unit of the General Authority of Zakat and Tax, told Al-Arabiya television on Sunday that rules covering the tax were published in the official gazette last week and would take effect after 15 days.
Officials have said they expect to raise between SR8 billion and SR10 billion ($2.1 billion to $2.7 billion) annually from the tax, which will comprise a 50 percent levy on soft drinks and 100 percent on tobacco and energy drinks.
The tax marks a big change in policy for Riyadh, which has traditionally kept taxation minimal but now plans a series of levies and fees by 2020 to close a budget gap that totaled SR297 billion last year. Next January it plans to impose a 5 percent value-added tax (VAT), a much bigger revenue-generating step.
The other countries in the six-nation Gulf Cooperation Council (GCC) have also agreed to impose the tax on tobacco and sugary drinks, and are expected to do so in coming months.


Indonesia looks for investment opportunities in Yemen

Updated 20 September 2019

Indonesia looks for investment opportunities in Yemen

  • Indonesia’s ambassador to Yemen expressed Indonesia’s interest in various fields
  • There are currently more than 2,500 students from Indonesia studying in Hadramout

DUBAI: Indonesia’s ambassador to Yemen discussed investment opportunities in the country with Yemeni officials in Hadhramout on Thursday, Saba News reported.

Hadhramout Local Authority and Leaders of Industrial and Commercial Chamber of Hadramout met with Ambassador Mustafa Tawfiq to discuss ways to strengthen trade exchange between the two countries.

The ambassador expressed Indonesia’s interest in various fields including scholarship programs and training for small business.

“In light of the current situation in Hadhramaut and the security and stability achieved, commercial and industrial relations between Hadhramaut and Indonesia are witnessing a remarkable and significant development in this aspect,” Tawfiq said, calling for increased visits between businessmen in Hadramaut with their Indonesian counterparts to expand the economic partnership between the two sides.

Meanwhile, Assistant Deputy Governor of Hadhramout for the Valley and Desert Districts Affairs, Abdulhadi Al-Tamimi welcomed Indonesia’s interest in investment opportunities, praising the historical relations between Yemen and Indonesia.

There are currently more than 2,500 students from Indonesia studying in Hadhramout, Al-Tamimi said.

The Indonesian envoy welcomed local businessmen to visit Indonesia next month where Jakarta will hold the 43rd Trade Expo where more than 1,100 companies will be participating.

However, the Yemeni official raised the issues of obtaining visas to Indonesia after the embassy’s move to Amman, Jordan from Sanaa after the Houthi militia took over the Yemeni capital.